The potentially large economic rewards from hallmark events are
exposed to erosion through a variety of risks. Some risks are common
to all capital projects and are minimised through good corporate
practices in the design, development and management of activities
and in judicious application of insurance and risk management
programs. This model assumes the VW2010 group and the Province
recognise these largely internal or endogenous risks and will
effectively manage them going forward.
Perhaps the most devastating endogenous risk is that, in spite of
best efforts, the delivery of the Games is materially flawed. This performance
risk could crystallise in any of a variety of forms such as: the
transportation system fails under peak pressure or isn't ready in
time, the GVRD water supply is vandalized and rendered undrinkable,
or the international media is badly treated in some way. Widespread
international coverage of any event of this nature could create
substantial lasting damage to the tourism industry and the economic
legacy of the Games depending on the severity of the event and the
effectiveness of the response. Fortunately, such risks can be
minimised through early identification and coordination of risk
management planning amongst the public and private stakeholders.
Other risks are more problematic because they are external or exogenous
potential events that are beyond the control of the Province but
could dramatically affect the impact of the Games.